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|   | 1. | Company      name: BluePhoenix Solutions Ltd.  |
|--------|----|-----------------------------------------------------|

|   | 2. | The      goals for which this company was founded (state the main      goals)  |
|--------|----|-------------------------------------------------------------------------------------|

|   | A. | To      practice programming, marketing, production, sales, import, export of      products of all types and sorts, including computers for individuals and      non-individuals, organizations, companies and legal bodies of all      kind.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B. | To      practice consultancy, training, mediation of any kind for individuals and      non-individuals, companies, organizations and legal entities of all sorts,      to give, to receive, to mediate, to plan, to organize and to implement      consultancy activities of all kinds, including planning and programming of      computers.  |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | C. | To      provide negotiation and advisory services of all sorts, to arrange, to      manage, to provide, to plan, to develop and to organize activities of the      aforementioned kinds, directly or through others, including computer      planning and programming.  |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | D. | To      plan, to develop, to establish, to create, to acquire and to sell, to      import products and services of all kind and to give consultancy and      managerial services for pertaining any of the aforementioned      activities.  |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      members’ guarantee is limited.  |
|--------|----|-----------------------------------------------------|

|   | 4. | The      company’s share capital is 2640 NIS, divided by 2640 regular shares of 1      NIS each.  |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | 5. | Resolution      of the General Meeting with respect to changes in the Company’s Memorandum      with respect to the Company's name and its purposes only shall be carried      by a majority of those present and voting at a General Meeting (a simple      majority). |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Names      of the Undersigned                                                                                  | Number      of shares issued | Signatures |
|----------------------------------------------------------------------------------------------------------------|------------------------------|------------|
|  1.      Aaron Crystal ID# 852668Computer      ProgrammerFrom:      40 Hashalom StreetMevaseret      Zion |  99                     |       |
|  2.      Anat Crystal ID# 00588180TeacherFrom:      40 Hashalom StreetMevaseret      Zion            |  1                      |       |
| Total      of shares issued:100                                                                                |                         |       |

|   | Witness      to the above signatures: _____ Moshe Knovler, Advocate |
|--------|--------------------------------------------------------------------------|

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